The battle report shows that my casualties are 700, but the enemy killed only 400. Presumably 300 is friendly fire. If yes, it would be interesting to know what kind of friendly fire there is and how to avoid it.

I know two types of friendly fire for sure (cannon and rifle fire). It is pretty obvious how to avoid being hit by cannon fire, however it is not entirely clear how to avoid friendly rifle fire?

1 Answer
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If it is friendly fire from rifles, be sure to spread your lines out. Also friendly fire can occur when you have two rows of line infantry. You can help avoid this by putting "gaps" into the lines - as in staggering them and allowing the back lines to fire through the openings in the first lines.

2 rows no go, I know that placing a row of rifleman behind a cannon seems to be ok.
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BanditoBunnyOct 25 '12 at 7:57

Light infantry/skirmishers, using their "light infantry behavior" ability, tend to do well with line infantry behind them, with little to no friendly fire. I would assume the same to be the case with line infantry in loose formation at the front and a normal group at the back.
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FadewayDec 11 '12 at 20:23